Types of Listing Agreements: There's more than One!

I came across a question on REIclub.com. A seller wanted to hire two agents to sell his home because he liked both. He asked if he can have a listing agreement with more than one agent. The answer is YES.

About.com explained the types of listing agreements available. Investors and some sellers may want to be creative when selling their home by using one of the less-used listing agreements. Again, I am just posting this so sellers and investors can know their options.

1. Open Listing:An open listing lets an owner sell her home by herself. It is a non-exclusive agreement, meaning the owner may execute open listings with more than one real estate broker and pay only the broker who brings an able buyer whose offer the owner accepts.
2. Exclusive Agency:An exclusive agency listing is similiar to an open listing except the major difference is the broker will represent the owner. The owner still reserves the right to sell the property herself and not pay a commission. The broker is free to cooperate with another brokerage, meaning the second brokerage could bring an able buyer whose offer the owner accepts. Typically, the broker is paid a listing commission that is shared with the selling broker, so the owner pays both fees.
3. Exclusive Right to Sell: An exclusive right-to-sell listing is the most commonly utilized instrument. It gives the broker the exclusive right to earn a commission by representing the owner and bringing a buyer, either through another brokerage or directly. The owner pays both the listing and selling broker fees. The owner cannot sell the property herself without paying a commission, unless an exception is noted in the contract.

The downside of using a non-exclusive listing would be that you may not get a good response from an agent who may be really good at marketing and selling homes. The most popular agents in your area may prefer to work with a you exclusively rather than have the potential of working very hard with no semi-guaranteed pay. I say "semi-guaranteed" because you should remember that the agent will usually work for free to sell your home and will only get paid at closing anyway.